The Office of the U.S. Trade Representative will soon release a list of the 1,300 tariff lines from China recommended because of China's forced technology transfer, forced joint ventures, intellectual property theft and technology licensing restrictions (see 1803220030). Within that list, the agency will propose 25 percent tariffs on aerospace, information and communication technology, and certain machinery, the White House said in a fact sheet. The total value of goods subject to levies will be $50 billion, the amount the administration says is the annual cost to American businesses because of China's unfair restrictions.

The Chapter 11 bankruptcy filing by Toys 'R' Us could reduce new orders of toys in the near future, said Steve Pasierb, president of The Toy Association, in a letter. "In addition to the direct negative impact on some companies, the flood of liquidation product from [Toys 'R' Us] can likely weaken sales at both mass and specialty retailers," he said. "Likewise, there will be a short-term negative influence on orders coming into our manufacturing members, at least until the ramp-up happens to stock for the 2018 holiday season." The toy industry is now "at an inflection point," he said.

Senate Finance Committee Chairman Orrin Hatch, R-Utah, speaking at a conference hosted by free-trade interest groups, said Congress will assert itself when it's time to renew fast-track trade negotiating authority in July -- and that no changes to NAFTA can take effect unless Congress signs off. "Because the Constitution very clearly assigns to Congress the power to lay and collect tariffs and to regulate foreign commerce, Congress must have the final word on the fate of NAFTA," he said March 20, according to prepared remarks. "Congress will use the extension disapproval process under the Trade Promotion Authority law to emphasize that the administration must adhere to the TPA negotiating objectives and to encourage the president to seek new agreements with our trading partners."

Wal-Mart, Macy's, Target and 23 other retailers and apparel brands sent a letter March 19 to the White House asking that broadly applied tariffs not be part of the Section 301 solution to Chinese intellectual property theft and investment restrictions. "Families shopping in our stores pay higher prices because America already levies import taxes as much as 32 and 67 percent on basic clothes and shoes," the companies said in the letter. "Applying any additional broad-based tariff as part of a Section 301 action would worsen this inequity and punish American working families with higher prices on household basics like clothing, shoes, electronics, and home goods.... As you continue to investigate harmful technology and intellectual property practices, we ask that any remedy carefully consider the impact on consumer prices."

International Trade Today is providing readers with some of the top stories for March 12-16 in case they were missed.

Business interests are continuing to sound the alarm that widespread tariffs against China as punishment for intellectual property theft and forced technology transfer are a bad idea (see 1803160009). "The Administration should not respond to unfair Chinese practices and policies by imposing tariffs or other measure that will harm U.S. companies, workers, farmers, ranchers, consumers, and investors," said a letter sent March 18 by 45 business groups to President Donald Trump. The signatories -- which included five regional customs brokers' trade groups and the National Customs Brokers and Forwarders Association of America -- were led by tech industry trade groups.

Tariffs are a tax on consumers, and not the right way to address China's industrial policies and unfair trade practices, the U.S. Chamber of Commerce says. U.S. Chamber CEO Thomas Donohue said March 15 that sweeping tariffs against China "could lead to a destructive trade war with serious consequences for U.S. economic growth and job creation. The livelihood of America’s consumers, businesses, farmers, and ranchers are at risk if the administration proceeds with this plan." Administration officials say the Section 301 technology transfer and intellectual property investigation response will be released in the coming weeks.

Despite the recent attention on Section 232 tariffs, some expect the effects of the Section 301 investigation started last year (see 1708210024) to eclipse the steel and aluminum import restrictions, panelists said at a Washington International Trade Association event March 13. Wendy Cutler, a former acting deputy U.S. trade representative, said once the White House announces what it's doing to respond to China's intellectual property transgressions, "we won't be talking about steel and aluminum."

The Louisiana Public Service Commission will open a rulemaking to align state local competition regulations with FCC rules, said an order released Monday. The PSC announced the proceeding as it granted Cox Communications a waiver from the toll equal access requirement for LECs in Section 301(K)(6) of state rules. “Cox will continue to provide long-distance service to its customers, as the waiver only allows Cox to cease offering its customers the option to subscribe to long distance service offered by a different provider,” the PSC said. The FCC eliminated equal access obligations in 2015 (see 1512170052).

The Office of the U.S. Trade Representative plans a hearing March 8 on its “Special 301” investigation of foreign countries that deny adequate and effective protection of intellectual property rights or deny fair market access to U.S. citizens who rely on IP protection, it said in Thursday's Federal Register. The hearing had tentatively been set for Tuesday. Post-hearing briefs are now due March 14, it said. USTR’s Special 301 report is still set for publication around April 30. Friday, USTR didn't have for us more details of the hearing at 1724 F St. NW, Rooms 1 and 2.